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2016 Second Quarter Home Sales Continue Trend to Outpace 2015

NASHVILLE, Tenn. (May 9, 2016) – There were 3,284 home closings reported for the month of April, according to figures provided by the Greater Nashville Association of REALTORS®. This represents an increase of 11.7 percent from the 2,940 closings reported for April 2015.

Year-to-date closings total 10,885. That is a 10.6 percent increase compared to the 9,844 closings reported through April 2015.

"As an industry we have started the second quarter with the same trends and increases we saw in the first," said Denise Creswell, GNAR President. "Last October Forbes listed Nashville fifth on their list of cities Americans are flocking to. That’s easy to believe considering year-to-date sales are up 1,000 units compared to the same time period last year.

“Even as much of the country is experiencing gains in the housing market, Middle Tennessee’s diverse economy and progressive leadership keeps our region among the top 20 markets in the country,” said Creswell. “Our metro area was recognized by the Brookings Institute as the fifth best metro area for job growth over the past five years. A flourishing job market combined with low mortgage rates continues to sustain our market.”

A comparison of sales by category for April is:

April 2015

April 2016

CLOSINGS

2,940

3,284

Residential

2,394

2,695

Condominium

329

365

Multi-Family

24

16

Farms/Land/Lots

193

208

There were 3,756 sales pending at the end of the month, compared to the 3,198 pending sales at this time last year. The average number of days on the market for a single-family home was 58 days.

The median residential price for a single-family home during April was $250,000 and for a condominium it was $193,473. This compares with last year’s median residential and condominium prices of $224,975 and $169,640, respectively.

Inventory at the end of April was 12,244, down from 13,521 in 2015. The current inventory of properties by category, compared to last year, is:

April 2015

April 2016

INVENTORY

13,521

12,244

Residential

8,853

8,318

Condominium

963

771

Multi-Family

112

96

Farms/Land/Lots

3,593

3,059

“Inventory is the biggest challenge to our market. Low inventory contributes to the fast clip of homes entering and leaving the market, as well as housing affordability” said Creswell. “Decreased inventory levels combined with high buyer demand equals a seller's market. Until there are more available properties on the market, median prices will continue to rise.

“Realtors have always stood in favor of making homeownership available to all who have the desire and ability to afford a home. Creating the desire isn't difficult, but enabling those with the ability can be challenging because of the lack of quality and available homes in the affordable price range,” said Creswell. “Because of this, GNAR is excited about Mayor Barry's commitment to increasing affordable housing units in Nashville. Hearing her list the Barnes Housing Fund as one of the items to benefit from our city's success and revenue growth is a step we are headed in the right direction.”